WHEN SHOULD YOU QUIT YOUR JOB?
I have seen too many videos of so-called GURU’s telling people stupid and bad advice about this topic.
“Now that you are an entrepreneur and making some money,
when should you quit your job?”
It is apparent that none of them understand business. They may know how to make money in their speciality but they simply don’t understand all that needs to go into making good choices about keeping your 9 to 5 employment while building your business.
I will explain the 10 business strategies entrepreneurs need to have in place before they should consider quitting their place of employment. I’ll also give you the correct model to follow and when I am done you’ll know all you need to decide when to leave that study income.
YES! There are clear cut dollar amounts and other factors to consider before you go and jump the gun and quit your job.
These are the “must have in place” before you can quit your job. While you are getting your business off the ground floor you should be building and structuring all of the below.
- Your monthly entrepreneur income should come close to your yearly job income
- Two years employment income in savings (this is what you’ll live off of while you are building your business)
- One-year of entrepreneurial medical cost in savings for the entire family
- Most have a monthly budget for advertising (at lease $500)
- All your legal (business entities) paperwork in order
- All Wills & Living Trust done
- Retirement plan should be structured and in place
- Secure proper funding for future growth (a business line of credit)
- All Tax strategies in place
- You must have proper Insurance coverage
Every entrepreneur I know of does not have most of this in place and that is just stupid.
You could be making millions of dollars a year and have someone sue you and take it all away.
Having all of the above in place before you quit your job is the right way to start your business. It keeps you, your family and your business safe, protected and secure. Yes getting everything together and working the proper way takes time and money that’s why you MUST stay on your job until you have gotten everything on the list completed.
You may do like me and so many other entrepreneurs did and not get all of the above done before you quit you j.o.b (many of use did it because we did not know any better. You have just been told – so you know better). If you do I know one thing for sure will happen. You’ll struggle every day until you have that breakthrough in income. I also know that you will never sleep well knowing that your business is not protected correctly. I am willing to bet that if your spouse and children knew you were told what to do and you did nothing they would be understandably angry with you if you were sued and you lost everything (your business, your money, your cars, and your personal home). Yep! I am reasonably sure you will be getting a divorce shortly after you get put into the homeless shelter.
I know I hit hard but it’s nothing compared to what one single lawsuit could do to you, your business(es), and your family.